Pocatello Retail Center Pocatello, ID Value-Add Retail center within Prominent regional retail area 1737 Hurley Dr., Pocatello, ID 83201 [ www.capitalpacific.com ]
POCATELLO RETAIL CENTER IS A 5,955 SF MULTI-TENANT RETAIL CENTER LOCATED WITHIN A MAJOR RETAIL DESTINATION AREA IN POCATELLO, IDAHO. Investment Highlights The offering provides an opportunity to acquire a 75% occupied value-add retail center with both existing tenants being first generation tenants, occupying space at the Center since 2006. Pocatello Retail Center benefits from the stability of its long-tenured existing tenants and also provides an opportunity for an investor to increase their yield more than 200 basis points upon lease up of the available suite. The subject is situated within a regional shopping destination area with several national retailers located in the immediate vicinity off of Highway 91. The frontage road, Hurley Drive, is part of a business loop off Highway 91 that includes Dick s, Ross, TJ Maxx, Lowe s as well as a Walmart Supercenter within close proximity. PRICE: $1,195,000 IN PLACE CAP: 6.30% BUILD-TO CAP: 8.30% LEASABLE SF...±5,955 SF LAND AREA...±34,848 SF OCCUPANCY...75% YEAR BUILT...2006 PARKING...±35 Spaces or 5.8/1,000 SF MAJOR TENANT...AT&T ADDRESS: 1737 Hurley Dr., Pocatello, ID 83201 POCATELLO RETAIL CENTER 2
Core Characteristics NATIONAL RETAILER DESTINATION SIGNIFICANT LEASING UPSIDE RETAIL DESTINATION AREA IN SOUTHEASTERN IDAHO Pocatello Retail Center is located within an area of Pocatello serviced by several major national retailers that create a wide retail draw extending across the southeastern Idaho region. Major retailers within close proximity to the Property include Walmart Supercenter, Costco, and a Lowe s Home Improvement Warehouse as well as the 526,000 SF Pine Ridge Mall. Additionally, Lithia auto group is in the process of developing a new larger 4.5-acre site for the Chrysler Jeep Dodge dealership one block north of the Property, to be open before 2017. VALUE-ADD OPPORTUNITY Pocatello Retail Center provides an opportunity for an investor to increase their yield as much as 200 basis points upon stabilization. The lease up of the remaining 25% consists of one available suite at 1,500 SF. EXPOSURE TO HEAVILY TRAFFICKED HIGHWAY The Property s location on Hurley Drive is exposed Highway 91, the main retail thoroughfare running through Pocatello. Highway 91 carries more than 25,000 vehicles per day and connects Interstate 86 north of the Property to all the major retailers in Pocatello. NATIONALLY-RECOGNIZED MAJOR TENANT WITH STRONG RENEWAL HISTORY Both existing tenants are firs generation, having occupied space at the Subject since 2006. AT&T occupies nearly half of the GLA at the Property and provides the ownership the stability of a nationally-recognized tenant that just signed a three-year extension. STRENGTHENING ECONOMIC REGION Recent expansions of prominent area businesses and strong economic growth in Pocatello and Idaho have helped the region and the state recognize extremely low unemployment rates. Idaho currently sits at 3.8% unemployment statewide, much lower than the national average of 5.5%. Idaho currently has the 11th-fastest growing population in the country and has recently added 50% more jobs than it lost in the recession. POCATELLO RETAIL CENTER 3
Quick Stats LEASE TYPE: FRANCHISEE NYSE: T EMPLOYEES: 240,000+ 5,000+ LOCATIONS WORLDWIDE 65+ LOCATIONS - FRANCHISEE ONLY BBB STANDARD & POOR'S INVESTMENT GRADE CREDIT RATING NET OPERATING INCOME $102,669 CAP: 8.30% Stabilized $74,962 CAP: 6.30% As-Is $ 200 BASIS POINT GROWTH POCATELLO RETAIL CENTER 4
Surrounding Retail 28,000 VPD PINE RIDGE MALL C-A-L Ranch Foot Locker Herberger s JCPenny Payless Shoe Source Red Lobster ShopKo FULL LIST OF PINE RIDGE MALL 91 OTHER RETAIL Aaron s Anytime Fitness Arby s Ashley Furniture AT&T Banzai s Bed Bath & Beyond Burger King Carmike Cinemas Costco Denny s Denver Mattress Dick s Sporting Goods Dollar Tree Harbor Freight Tools Home Depot IHOP Joann Fabric & Craft Les Schwab Tires Lowe s McDonald s Moutain America C.U. Pizza Hut Petco Ross Sally Beauty Staples Shops on Bullock Starbucks Subway T.J. Maxx T-Mobile Verizon Walgreens Walmart Supercenter Wendy s Xpress Cash PINE RIDGE MALL CLICK HERE FOR FULL DIRECTORY YELLOWSTONE AVE POCATELLO RETAIL CENTER 26,579 VPD 86 W QUINN AVE POCATELLO RETAIL CENTER 5
Aerial 26,579 VPD 86 PINE RIDGE MALL CLICK HERE FOR FULL DIRECTORY YELLOWSTONE AVE 28,000 VPD POCATELLO RETAIL CENTER W QUINN AVE POCATELLO RETAIL CENTER 6
Site Plan SITE PLAN KEY PARCEL OUTLINE: LAND AREA: ±34,848 SF LEASABLE SF: ±5,955 SF INGRESS/EGRESS: SUBJECT: PYLON SIGN: MEDITERRANEAN SUN AVAILABLE 5,905 DAILY HURLEY DR Site Plan Not To Scale POCATELLO RETAIL CENTER 7
Financial Summary IN-PLACE STABILIZED PRICE $1,195,000 $1,195,000 PLUS: LEASING COSTS $39,000 TOTAL INVESTMENT $1,195,000 $1,234,000 Capitalization Rate 6.30% 8.30% Price Per Foot $201 $207 NET OPERATING INCOME SUMMARY IN-PLACE STABILIZED SCHEDULED INCOME Per SF 1 Scheduled Rent: 11/1/2016 $14.13 $84,135 $111,135 Plus: Expense Reimbursement $3.74 $22,250 $30,015 Equals: Scheduled Gross Income $17.86 $106,385 $141,150 Current Proforma Vacancy 25% 5% ($7,058) Equals: Effective Gross Income (EGI) $17.86 $106,385 $134,093 Less: OPERATING EXPENSES Per SF 1 CAMS $0.91 $5,400 $5,400 Property Taxes $3.06 $18,227 $18,227 Insurance $0.29 $1,741 $1,741 Management Fee 2 4.0% of EGI $0.92 $5,460 $5,460 Reserves $0.10 $596 $596 Total Operating Expenses $5.28 ($31,423) ($31,423) Equals: NET OPERATING INCOME $12.59 $74,962 $102,669 LEASING COSTS Tenant Improvement Allowance $15 SF $23,000 CAMS on Vacancy 1 Year $8,000 Leasing Commissions 6% 5 Years $8,000 TOTAL LEASING COSTS $39,000 Notes: 1) Based on in-place occupancy. 2) Percentage based on Stabilized EGI. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. POCATELLO RETAIL CENTER 8
Rent Roll Tenant Name Suite Size % of SF TENANT INFO LEASE TERMS CURRENT RENT OPTIONS Occupancy Date Lease Expiration Monthly Base Rent Rent/SF/YR AT&T Wireless 1 2,800 47.0% 1/3/06 6/30/19 $4,667 $20.00 1-3 YR NNN 6% Increase 90 Days Notice Available 2 1,500 25.2% $2,250 $18.00 LEASE TYPE Mediterranean Sun 3 1,655 27.8% 8/1/06 9/30/17 $2,345 $17.00 1-3 YR NNN comments: Tenant is currently month-to-month and in the process of signing a one-year lease extension. Analysis dates assume a one-year extension. 3% Annual Increases 180 Days Notice Totals: 5,955 100% $9,261 $18.66 Occupied 4,455 75% $7,011 $18.89 Leasable 1,500 25% $2,250 $18.00 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. POCATELLO RETAIL CENTER 9
Operating Expenses 2016 OPERATING EXPENSES REIMBURSEMENTS Total /SF Notes In-Place Stabilized CAMS $5,400 $0.91 1 $4,040 $5,400 Property Taxes $18,227 $3.06 2 $13,636 $18,227 Insurance $1,741 $0.29 1 $1,302 $1,741 Management Fee $5,460 $0.92 3 $3,272 $4,648 Reserves $596 $0.10 4 - - Total Expenses $31,423 $5.28 $22,250 $30,015 Notes: 1) Based on 2015 Actuals plus 3% increase. 2) Based on 2016 Bannock County Tax Assessment. 3) Based on 4% of Stabilized EGI. 4) Methodology: $0.10/SF. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. POCATELLO RETAIL CENTER 10
Reimbursements Tenant Name Size Pro Rata % Pro Rata CAM Pro Rata Property Taxes Pro Rata Insurance Pro Rata Management Expense Totals $5,400 $18,227 $1,741 $5,460 Notes In-Place Reimbursements Vacancy Reimbursements AT&T Wireless 2,800 47.0% $2,539 $8,570 $818 $2,567 $14,495 $0 Available 1,500 25.2% $1,360 $4,591 $438 $1,375 $0 $7,765 Mediterranean Sun 1,655 27.8% $1,501 $5,066 $484 $705 1 $7,755 $0 TOTAL 100% $5,400 $18,227 $1,741 $4,648 $22,250 $7,765 Notes: 1) Management Fee shall not exceed 10% of operating costs. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. POCATELLO RETAIL CENTER 11
Lease Abstract COMMON AREA MAINTENANCE Tenant to reimburse Landlord for all operating costs necessary for maintenance and repair of the Premises including all management costs. PREMISES/TERM TENANT New Cingular Wireless, LLC dba AT&T SQUARE FEET ±2,800 SF RENT COMMENCEMENT January 3, 2006 LEASE EXPIRATION June 30, 2019 OPTIONS PERIOD(S) One, three-year option with a 6% increase in base rent. BASE RENT LEASE YEAR 7/1/16 6/30/19 3rd Option Period PER SQUARE FOOT $20.00 $21.20 MONTHLY $4,666.67 $4,946.67 ANNUALLY $56,000 $59,360 LANDLORD MAINTENANCE OBLIGATIONS Landlord shall maintain, repair and replace all life safety systems, foundations, walls, unexposed plumbing, all structural elements, all mechanical equipment not serving the Premises exclusively, all HVAC equipment not serving the Premises exclusively and the roof. TENANT MAINTENANCE RESPONSIBILITIES Tenant is responsible for repair of the Premises, including plumbing, HVAC, mechanical and electrical systems, security and fire protection systems. EXCLUSIVES Tenant shall have the exclusive right to sell wireless communication equipment, and operate as a wireless service provider and distributor. UTILITIES Tenant to pay for all electric, gas, water, sewer, phone, computer and internet services. REAL ESTATE TAXES Tenant shall be responsible for all real estate taxes, charges and assessments on the Premises including any improvements and fixtures. INSURANCE Tenant responsible for general liability policy as well as an all risk insurance policy. POCATELLO RETAIL CENTER 12
Construction Details FOUNDATION Concrete slab on grade foundation. WINDOWS AND DOORS Swinging glass doors with PLUMBING aluminum frame storefront systems. One restroom with toilet and sink for each suite, typical of a retail use. EXTERIOR WALLS CMU block construction with decorative stucco and stacked stone veneer accents. ELECTRICAL 200-amp service for each individual suite, which is separately metered. HVAC Three roof-mounted units at the center service the three individual suites. LANDSCAPING Manicured grass and deciduous trees line the parcel exterior bordering Hurley Drive. ROOF Flat, built-up membrane roof. PARKING Total: ±35 Spaces or 5.8/1,000 SF SIGNAGE 14 Pylon sign exposed to north and southbound traffic on Hurley Drive. POCATELLO RETAIL CENTER 13
Pocatello, ID ABOUT POCATELLO, ID Founded in 1889, Pocatello is known as the Gateway to the Northwest. Located in southeast Idaho, Pocatello is the county seat and largest city of Bannock County, Idaho. It is the principal city of the Pocatello metropolitan area, which encompasses all of Bannock and Power counties, and is the fifth largest city in Idaho. Pocatello has a four-season climate where clear, sunny and dry is the norm. The area is popular for its numerous outdoor activities including hiking, biking, fishing, skiing and riding ATV s. Employment in Pocatello is anchored by education, health and social services. The city s largest employer is Idaho State University, a public university with over 15,000 students. Pocatello benefits from a 4.6% unemployment rate compared to the national average of 6.3% and expects near term future job growth of more than double the national average. POPULATION DRIVE-TIMES 10-Min 20-Min 30-Min 2010 52,347 75,185 100,008 2016 53,953 77,399 102,575 2021 54,508 78,111 103,309 2016 HOUSEHOLD INCOMES DRIVE-TIMES 10-Min 20-Min 30-Min Median $40,940 $42,723 $43,087 Average $55,987 $58,479 $58,183 POPULATION RADIUS 1-Mile 3-Mile 5-Mile 2010 7,903 51,473 67,057 2016 8,091 53,039 69,044 2021 8,151 53,585 69,671 2016 HOUSEHOLD INCOMES RADIUS 1-Mile 3-Mile 5-Mile Median $36,352 $42,183 $41,490 Average $46,403 $57,090 $56,906 Boise Idaho Falls DRIVE-TIME KEY 10 minutes Pocatello 50 Min 52 Miles 20 minutes 3 Hr, 18 Min 240 Miles 2 Hr, 19 Min 165 Miles 30 minutes 5-MILES 3-MILES 1-MILE POCATELLO RETAIL CENTER Salt Lake City POCATELLO RETAIL CENTER 14
Idaho/Pocatello Economic Growth TOP EMPLOYERS # Of Employer Idaho State University Employees 3,811 Pocatello/Chubbuck School District 1,716 Portneuf Medical Center 1,294 ON Semiconductor 700 Pocatello City Government 654 Convergys 564 Union Pacific Railroad 470 Bannock County 420 FBI DATA CENTER EXPANSION Operating in Pocatello since 1985 Adding 300+ High Paying Jobs Expansion will be complete in the Spring of 2017 Pocatello Location is a major hub for the Federal Agency $10 Million Project CLICK HERE FOR MORE INFO CATERPILLAR EXPANSION 150,000 SF Built on a 26-Acre Site Provides added jobs to the Pocatello Market $25 Million Construction Project 60 year history in Pocatello with an implied long-term commitment CLICK HERE FOR MORE INFO IDAHO GROWTH 11th FASTEST GROWING POPULATION IN THE UNITED STATES 93,000 NEW JOBS REPLACED 60,000 LOST DURING THE RECESSION 3.8% UNEMPLOYMENT RATE STATEWIDE Caterpillar, Pocatello, ID www.caterpillar.com/en/company.html POCATELLO RETAIL CENTER 15
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